OTM – 615 Assignment # 3

Operations Research Due Date: Wednesday, November 27, 2019

QUESTION # 1 (25 Points): Solve the following goal programming model graphically

SOLUTION

QUESTION # 2 (20 Points): The Oregon Atlantic Company produces two kinds of paper — newsprint and
white wrapping paper (butcher paper). It requires 5 minutes to produce a yard of newsprint and 8 minutes to
produce a yard of wrapping paper. The company has 4,800 minutes of normal production capacity available
each week. The profit is $0.20 for a yard of newsprint and $0.25 for a yard of wrapping paper. The weekly
demand is for 500 yards of newsprint and 400 yards of wrapping paper. The company has established the
following goals, in order of priority:

1) Limit overtime to 480 minutes.

2) Achieve a profit of $300 each week.
3) Fulfill the demand for the products in order of magnitude of their profits.
4) Avoid underutilization of production capacity.

A. Formulate a goal programming model to determine the number of yards of each type of paper to produce
weekly to satisfy the various goals.
B. Solve the goal programming model by using the computer.
SOLUTION

QUESTION # 3 (20 Points): The Eaststate Manufacturing Company produces four different airplane parts
from fabricated sheet metal for several major aircraft companies. The manufacturing process consists of four
operations—stamping, assembly, finishing, and packaging. The processing times per unit for each operation
and total available hours per year to produce these parts are as follows:
Part (hr./unit)
Operation 1 2 3 4 Total Hours / year
Stamping 0.06 0.17 0.10 0.14 700
Assembly 0.18 0.20 -- 0.14 700
Finishing 0.07 0.20 0.08 0.12 800
Packaging 0.09 0.12 0.07 0.15 600
The sheet metal required for each part, the estimated annual demand, and the profit per part are as follows:
Part Sheet Metal (𝒇𝒕𝟐 Estimated Annual Demand Profit
1 2.6 2,600 90
2 1.4 1,800 100
3 2.5 4,100 80
4 3.2 1,200 120

The company has 15,000 square feet of fabricated metal delivered each month. The company has the following
prioritized production goals:

1) Avoid overtime, which would erode profit levels.

2) Meet parts demand.
3) Achieve an annual profit of $700,000.
4) Avoid ordering more material because a surcharge is required by the supplier for changing the standard
monthly order.

A. Formulate a goal programming model to determine the amount of each part to produce to achieve the
company’s objectives.
B. Solve this model by using the computer.
C. How would the solution be affected if the first two priorities were reversed?
SOLUTION

𝑚𝑖𝑛𝑖𝑚𝑖𝑧𝑒 𝑍 = 𝑃1 (𝑑+11 , 𝑑+12 , 𝑑+13 , 𝑑+14 ), 𝑃2 (𝑑−5 , 𝑑−6 , 𝑑−7 , 𝑑−8 ), 𝑃3 𝑑−9 , 𝑃4 𝑑+10
0.06𝑥1 + 0.17𝑥2 + 0.10𝑥3 + 0.14𝑥4 + 𝑑1− − 𝑑1+ = 700
0.18𝑥1 + 0.20𝑥2 + 0𝑥3 + 0.14𝑥4 + 𝑑2− − 𝑑2+ = 700
0.07𝑥1 + 0.20𝑥2 + 0.08𝑥3 + 0.12𝑥4 + 𝑑3− − 𝑑3+ = 800
0.09𝑥1 + 0.12𝑥2 + 0.07𝑥3 + 0.15𝑥4 + 𝑑4− − 𝑑4+ = 600
𝑥1 + 𝑑5− − 𝑑5+ = 2,600
𝑥2 + 𝑑6− − 𝑑6+ = 1,800
𝑥3 + 𝑑7− − 𝑑7+ = 4,100
𝑥4 + 𝑑8− − 𝑑8+ = 1,200
90𝑥1 + 100𝑥2 + 80𝑥3 + 120𝑥4 + 𝑑9− − 𝑑9+ = 700,000
− +
2.6𝑥1 + 1.4𝑥2 + 2.5𝑥3 + 3.2𝑥4 + 𝑑10 − 𝑑10 = 15,000

QUESTION # 4 (20 Points): A manager in a food processing company must choose a new packaging
machine to replace the existing one which is wearing out. The manager has a limited budget for the purchase
and has narrowed down the possible options to three: (i) Aztec (ii) Burton (iii) Congress. However, the
decision is still proving to be difficult because of the variety of attributes associated with the machines, such
as the reputation for reliability, the purchase price and the quality of after sales support provided by the
different manufacturers. The manager decides to apply AHP to determine the best option. Suppose that
following are the preferences of the manager when three criteria were evaluated as well as when three options
(alternatives) are examined in terms of the three evaluating criteria separately.

Criteria 1 Criteria 2 Which is important How much important

Reputation for Reputation for Weakly More
Purchase price
reliability reliability Important
Quality of after sales Moderately Plus More
Purchase price Purchase price
support Important
Reputation for Quality of after sales Reputation for Demonstrated More
reliability support reliability Important

Based on reputation for reliability

Alternative 1 Alternative 2 Which is important How much important
Aztec Burton Aztec Weakly More Important
Burton Congress Burton Weakly More Important
Aztec Congress Aztec Moderately More important

Based on purchase price

Alternative 1 Alternative 2 Which is important How much important
Aztec Burton Aztec Weakly More Important
Burton Congress Burton Weakly More Important
Aztec Congress Aztec Strongly Plus More Important

Based on purchase price

Alternative 1 Alternative 2 Which is important How much important
Aztec Burton Aztec Demonstrated More Important
Burton Congress Burton Strongly Plus More Important
Aztec Congress Aztec Extremely More Important
A. Develop a decision hierarchy for this problem.

Choose the best packaging machine

Reputation for reliability Purchase price Quality of after sales

support

Aztec Burton Congress

B. Develop numerical pairwise comparison matrices (NPCMs) at each level of hierarchy.

C. Find consistency index of NPCMs developed in part B.
D. Derive weight vectors at each level of hierarchy.

C1: Reputation for Weight

A B C
Reliability Vector
A 1 2 3 0.54
B 1/2 1 2 0.30
C 1/3 1/2 1 0.16
CR = 0.96 %

Weight
C2: Purchase Cost A B C
Vector
A 1 2 6 0.61
B 1/2 1 2 0.27
C 1/6 1/2 1 0.12
CR = 2.21 %

C3: Quality of After Sales Weight

A B C
Support Vector
A 1 5 9 0.75
B 1/5 1 3 0.18
C 1/9 1/3 1 0.07
CR = 4.49 %

Weight
Criteria Comparison C1 C2 C3
Vector
C1 1 2 7 0.60
C2 1/2 1 4 0.32
C3 1/7 1/4 1 0.08
CR = 0.24 %
E. Derive weight vector vector for Aztec, Burton and Congress.

Criteria Final Weight

C1 C2 C3
Scores Vector
Aztec
Burton
0.54
0.30
0.61
0.27
0.78
0.15
× 0.60
0.32
0.58
0.28
Congress 0.16 0.12 0.07 0.08 0.14

QUESTION # 5 (20 Points): Bernard Mee, the head of the department of management science at Tech, is
evaluating faculty for salary raises at the end of the academic year. He is considering three faculty members
for raises: John Abbott, Megan Bates, and Debbie Cook. Faculty evaluations are based on three criteria
teaching, research, and service. Professor Mee’s pairwise comparisons for each of the three faculty members
for each criterion and his pairwise comparison matrix for the three criteria are as follows:

Criteria 1 Criteria 2 Which is important How much important

Teaching Research Teaching Moderately More important
Research Service Research Weakly More Important
Teaching Service Teaching Strongly More Important

Based on teaching
Candidate 1 Candidate 2 Which is important How much important
John Abbott Megan Bates John Abbott Weakly More Important
Megan Bates Debbie Cook Debbie Cook Strongly More Important
John Abbott Debbie Cook Debbie Cook Moderately More important

Based on research
Candidate 1 Candidate 2 Which is important How much important
John Abbott Megan Bates John Abbott Moderately More important
Megan Bates Debbie Cook Debbie Cook Strongly More Important
John Abbott Debbie Cook Debbie Cook Weakly More Important

Based on service
Candidate 1 Candidate 2 Which is important How much important
John Abbott Megan Bates John Abbott Moderately More important
Megan Bates Debbie Cook Megan Bates Weakly More Important
John Abbott Debbie Cook John Abbott Strongly Plus More Important
A. Develop a decision hierarchy for this problem.

Choose the best faculty for salary raises

Teaching Research Service

John Abbott Megan Bates Debbie Cook

B. Develop numerical pairwise comparison matrices (NPCMs) at each level of hierarchy.

C. Find consistency index of NPCMs developed in part B.
D. Derive weight vectors at each level of hierarchy.

Teaching John Abbott Megan Bates Debbie Cook Vector

John Abbott 1 2 1/3 0.23
Megan Bates 1/2 1 1/5 0.12
Debbie Cook 3 5 1 0.65
CR = 0.47 %

Research John Abbott Megan Bates Debbie Cook Vector

John Abbott 1 3 1/2 0.31
Megan Bates 1/3 1 1/5 0.11
Debbie Cook 2 5 1 0.58
CR = 0.42 %

Service John Abbott Megan Bates Debbie Cook Vector

John Abbott 1 3 6 0.67
Megan Bates 1/3 1 2 0.22
Debbie Cook 1/6 1/2 1 0.11
CR = 0.00 %

Criterion Teaching Research Service Vector

Teaching 1 3 5 0.65
Research 1/3 1 2 0.23
Service 1/5 1/2 1 0.12
CR = 0.47 %
E. Derive weight vector for John Abbott, Megan Bates, and Debbie Cook and select the candidate for a salary
raise.

Teaching Research Service Criteria Final Weight

Scores Vector
John Abbott
Megan Bates
0.23
0.12
0.31
0.11
0.67
0.22
× 0.65
0.23
0.30
0.13
Debbie Cook 0.65 0.58 0.11 0.12 0.57